The law of Contract

CERTAINTY
 Define certainty

Learning Distinguish elements of contract and

terms of contract

Outcomes Illustrate elements of contract and its

rules

By the end of the lesson, Explain cases in relation to

contract
students are able to;
Apply elements of
contract in relation to
construction industry

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 1

WHAT?
Let’s start with clarifying certainty.
What Do You See?

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“ SECTION 30 OF THE CONTRACT ACT
1950;
“Agreements, the MEANINGS of which
is NOT CERTAIN, or CAPABLE OF
BEING MADE CERTAIN, are VOID”

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 2
UNDERSTANDING
UNCERTAINTY
Refer to illustrations of section 30
Example of Certainty in
Agreement
b) A agrees to sell to B one hundred tons of oil of a specified
description, known as an article of commerce.
There is no uncertainty here to make the
agreement void

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Example of Certainty in
Agreement
c) A, who is a dealer in coconut oil only, agrees to sell to B “one
hundred tons of oil”.
The nature of A’s trade affords an indication of the meaning of
the words, and A has entered into a contract for the sale of one
hundred tons of
coconut oil.

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Example of Certainty
in Agreement
d) A agrees to sell to B “all the grain in my granary at Ipoh”.
There is no uncertainty here to make the agreement void.

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Example of Certainty
in Agreement
e) A agrees to sell to B “one thousand gantangs of rice at a price
to be fixed by C”.
As the price is capable of being made certain, there is no
uncertainty here to make the agreement void.

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Example of Uncertainty
in Agreement
a) A agrees to sell to B “a hundred tons of oil”.
There is nothing whatever to show what kind of oil was
intended.
The agreement is void for uncertainty

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Example of Uncertainty
in Agreement
f) A agrees to sell to B “my white horse for five hundred ringgit
or one thousand ringgit”.
There is nothing to show which of the two prices was to be
given.
The agreement is void.

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 3
SOURCES OF
UNCERTAINTY
What are the sources of uncertainty?
A legally Vagueness Redundancy

binding
Inconsistency

Undue Generality

agreement
must
Gaps
Ambiguity

consist of; Conflicts

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GUTHING V LYNN
(1831) 2B & AD 232
Plaintiff upon buying a horse from defendant
promised if the horse is lucky, he will pay $5 more
for the horse or buy another horse.
The term ‘lucky’ was too vague to create a
binding contract between the parties.

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HAJARA SINGH V
MUTHUKARUPPAN &
OTHERS [1967] MLJ 167
(FC)
The appellant alleged there was an oral agreement between
him and the land owner allowing him to occupy the land for as
long as he wished during his lifetime.

The Federal Court held, the expression “for as long as he wished

during his lifetime” was uncertain. The agreement was void
under s. 30.

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“ ▪
▪
Relevant Cases
CASES
Yang Tong Hong v Siew Soon Wah & Others [1971] 2 MLJ 105 (FC)
Charles Clay & Sons Ltd v British railways Board [1970] 2 WLR 1328
▪ Baird Textile Holdings Ltd V Marks & Spencer Plc [2001] EWCA CIV
274
▪ Scammel v Ousten [1941] AC 251
▪ Ahmed Meah & Anor v Nacodah Merican [1980] 4 KY 583

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CONTRACT TERMS
Summary
NO
IS IT CERTAIN?

NO
IS IT CAPABLE OF
YES
BEING MADE CERTAIN?

YES
VALID VOID

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“
A entered into an agreement to
build a suitable house for B.

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Thanks!
Any questions?
You can find me at @sitisuhaidahsahab

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